AG Barr CEO Euan Sutherland has praised the company’s “year of significant strategic progress”, including a “more meaningful M&A” strategy, after the company reported revenue and profit growth this morning.
Revenue at the Scottish soft drinks group was up 4% to £437m in the year to 31 January 2026, led by “growing momentum” in core brands Irn-Bru, Rubicon and Boost.
Growing its adjusted operating margin 1.2 points to 14.8%, the group posted an adjusted pre-tax profit of £65.8m, up from £58.5m the prior year. It marked the group’s third consecutive year of double-digit adjusted pre-tax profit growth.
Along with a 20.4% rate of return on capital employed (ROCE), the company’s performance put it in line with stated aims to grow revenue by at least 4% each year, maintain an operating margin within 14%-16%, and generate ROCE of 19%-21%.
“This was a year of significant strategic progress in which we also delivered on our targeted financial metrics,” said Sutherland.
“We have strengthened the foundations of the business and stepped up our investment in brand development, commercial capability and our operations to ensure we can consistently sustain high levels of performance. These actions, supplemented by a more meaningful M&A strategy, support our ambition to deliver our target of sustainable, consistent top and bottom-line growth.”
At the end of the financial year, AG Barr bought premium juice brand Frobishers, which was followed shortly after in the new financial year with the acquisition of soft drinks and mixers brand Fentimans. Together, the pair represent AG Barr’s play for the “attractive” adult soft drinks market, with integration expected by the end of 2026.
At the beginning of March, AG Barr began consultations with employees at Fentimans over the planned redundancy of 37 roles.
“We entered FY26/27 with good momentum and clear priorities, and expect to deliver a year of low-double-digit percentage revenue growth supported by our recent acquisitions.
“Our strategy aims to deliver above-market growth rates and realise our ambition of doubling the size of the business. Importantly, we are pursuing this ambition without changing our core business model, and with a continued disciplined focus on margin, ROCE and shareholder returns.”
Panmure Liberum analyst Anubhav Malhotra praised AG Barr’s progress.
“Over the past two years, a largely refreshed senior management has focused on innovation, sharpening brand positioning, expanding grocery distribution, and reshaping the portfolio via M&A to align with health and wellness trends. FY27 should be the first year to reflect these efforts,” he said.
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